The state of New Jersey is just one of the states phasing out the sale of new gas-powered cars by 2035. So, on today’s episode of Inside Automotive, we’re getting an update on how things are moving along in the state. Joining us now is the President of NJ Car, Jim Appleton.
Key Takeaways
1. The transition to electric vehicles (EVs) is heavily influenced by government mandates, notably from the California Air Resources Board (CARB) and the Biden administration. These mandates create significant challenges for OEMs and, subsequently, for dealers who must adapt to these changes.
2. According to Appleton, dealers face substantial burdens, including the need for training, facility upgrades, and stocking EVs that consumers may not yet be ready to purchase. However, he also notes that OEM pressure to meet government mandates often results in financial strain and logistical challenges for dealerships.
3. OEMs like Ford have asked dealers to make significant investments in EV infrastructure, only to later scale back their EV production plans. This inconsistency creates uncertainty and financial risks for dealers who have invested heavily in preparing for an EV-centric future.
4. The high cost of EVs remains a significant barrier to widespread adoption. Dealers are concerned about the affordability of new vehicles, with average transaction prices soaring. This issue is compounded by the government’s push for a higher percentage of EV sales in states like New Jersey.
5. NJ CAR is working on legislation to address recall issues and ensure fair compensation for warranty and recall repairs. Improving the effectiveness of recall notifications and compensation practices is crucial for consumer safety and dealer viability.
"We want to support the OEMs in meeting the government mandates, but at the same time, the OEMs have to maintain a rational and reasonable relationship and approach with their dealers on this." – Jim Appleton.
